26 November 2016
I PAY SERVICE TAX ON RENT PAID AND RECEIVE SERVICE TAX ON RENT RECEIVED TO BE DEPOSITED TO GOVT. CAN THESE BOTH BE SET OFF WITH EACH OTHER OR DO I HAVE TO PAY BOTH TO GOVT. ?
29 November 2016
No no, u can claim ITC on service tax on rent paid by u. Example:-
U paid rent of Rs. Say 10,000/-, and ST paid by u is 1500, total amount 11,500/- (1450 is ur Cenvat Credit u can claim with output Service Tax)
U collect Rent Rs. 1,00,000/-, and ST collected is 15000/- (15,000,is ur output tax to be paid to dept.).
So the final amount u r going to pay to Govt. Account is (15,000 - 1450 = 13550/-)
Note: Here one thing keep in mind that U can't claim credit of Swachh Bharat Cess with ur ST liability, thats y the amount is 1450. ST- 1400, SBC- 50 and KKC- 50.
CAclubindia
